A STUDY ON FACTORS GOVERNING COMPUTERIZED

ACCOUNTING IN SELECTED SMEs OF GUJARAT

GUIDED BY

Dr. YAGNESH. M. DALVADI

Presented By
JAIN HARSHIT R

ASSISTANT PROFESSOR

P.G. DEPARTMENT OF BUSINESS STUDIES

SARDAR PATEL UNIVERSITY
VALLABH VIDYANAGAR

Exam No: 07
M.Phil (viva-voce)
2014-15

Brief Ideas of The Chapters

The whole study has been divided into 5 Chapters.
1. Introduction
2. Review of Literature
3. Research Methodology
4. Analysis of the Study
5. Findings & Suggestions / Recommendations'

What is Computerized Accounting?

Computerized accounting systems are software programs

that are stored on a company's computer, network server, or

remotely and accessed via the internet.
Computerized

accounting systems allow you to set up

income and expense accounts, such as rental or sales
income, salaries, advertising expenses, and material costs.

Hence,

Increasing the Speed, Accuracy

effectiveness of maintenance of Accounts.

and

Cost

Introduction

Accounts are the performance mirror of any

institution or organization and hence they
perform a very important role in the providing
overview of the organizations position.

Generally accounts were maintained in hard

bound books but with the passage of time it
has changed drastically.

In this day and age companies maintain their

accounts in digital format i.e. on computers
with the help of various accounting software.

Review of Literature
>>>The review of literatures discusses:
Reasons for adoption of information technology system,
Impact of implementation of Information Technology for
Accounting,
Applicability of technology models of Information &
Communication Technology,
Work on consequences of successful ERP implementation,
etc.
But no study have been found for SMEs of Gujarat, so it

will be very useful study for the body of knowledge.

Research Methodology
>>> Objective of the Study:

To study the adoption of technology for accounting by SMEs.

To understand the level of usage of technology for various

purpose of business.
To examine the reasons for the adoption of technology.
To identify factors governing usage of Computerized
Accounting System in SMEs.

Research Methodology
RESEARCH BASED ON
Primary Data

TOOL FOR DATA COLLECTION

A well structured Questionnaire.
SAMPLE SIZE
200 SMEs were selected.

SAMPLE TECHNIQUE
Research is based on SPSS and ANOVA.

AREA OF SAMPLE
Anand-VVN, Nadiad, Vadodara, Borsad

TYPE OF COMPANIES
Electrical Machinery, Polymer, Fabrics, Tobacco,
Furniture, Engineering, Food , Colours, Chemicals.
NATURE OF COMPANIES
Manufacturing, Processing, Manufacturing & Processing.

HYPOTHESIS
H01: There is no significant difference in the Area wise

opinion regarding the reasons

Computerized Accounting.

for

Adoption

H02:

of

There is no significant difference in Type of

Company wise attitude concerning the grounds for
Adoption of Computerized Accounting System.

H03: There is no significant difference in Nature of

Company wise outlook of the basis for Adoption of

Computerized Accounting System.

ANALYSIS

Hyperlink.docx

HYPOTHESIS
TESTING

H01: There is no significant difference in the Area wise

opinion regarding the reasons for Adoption of
Computerized Accounting.
From the result of ANOVA it can be inferred that the significance level

of variable called Knowledge (0.029), Willingness (0.018), Timely

Information (0.048), Real Time Access (0.003), Quick to Produce
(0.011), Reduction in Paper Work (0.047), Permanent Records (0.001)
is less than 0.05 so we reject the Null Hypothesis i.e. There is no
Significant difference in the Area wise Opinion regarding reasons for
Adoption of Technology.
For other Variables we cannot reject the Null Hypothesis which

are Affordability (0.469), Benefits compared to Cost (0.060), Less

Dependency on Others (0.062), Helpful for Online Submission of
reports (0.186), Reduced Frauds (0.136).

H02: There is no significant difference in Type of Company wise attitude

concerning the grounds for Adoption of Computerized Accounting System.
The outcome of ANOVA concludes that the significance level of

variable Affordability (0.048), Knowledge (0.027), Benefits

compared to cost (0.035) and Reduction in paper work (0.022) is
less than 0.05 so we reject the Null Hypothesis i.e. there is no
significant difference in the Type of Company-Wise Opinion
regarding reasons for Adoption of Technology.
For other Variables we cannot reject the Null Hypothesis, that are

Willingness (.708), Less Dependency on Others (.109), Timely

Information fro Decision Making (0.736), Real Time Access (.545),
Quick to Produce Accounts (.339), Helpful for Online Submission of
Reports (.750), Reduced Frauds (.889), Permanent Records (.329).

H03:

There is no significant difference in Nature of Company

wise outlook of the basis for Adoption of Computerized
Accounting System.
From the result of ANOVA it can be concluded that

significance level of variable called Affordability (0.493),

Knowledge (0.471), Willingness (0.367), Benefits compared
to cost (0.808), Less dependency on others (0.689), Timely
Information (0.453), Real Time Access (0.171), Quick to
Produce accounts (0.136), Reduction in Paper Work (0.690),
Helpful in Online Submission of Reports (0.969), Reduced
Frauds (0.822), Permanent Records (0.608) is more than 0.05
so we accept the Null Hypothesis i.e.
There is no Significant difference in the Nature of Company
wise Opinion regarding reasons for Adoption of Technology.

MAJOR FINDINGS
There is an extensive use of Computerized Accounting System in

SMEs of all the selected Areas.

Different business use CAS according to their convenience.
The factors that govern CAS in SMEs are :
1. Willingness 2. Quick to Produce Accounts 3. Real-Time Access &

Reduction in Paper Work 4. Affordability 5. Knowledge Pertaining to

Technology 6. Helpful in Online Submission of Reports 7. Reduced
Frauds 8. Safety of Data 9. Less Dependency on others.

 The

area-wise ANOVA resulted that 7 factors have a

significant difference in the area-wise opinion regarding the
reason for adoption of technology.

From the ANOVA test it can be realized that only 4 factors

have significant difference in the type company-wise opinion

regarding the reason for adoption of technology.
The ANOVA test reflects that all the 11 factors have no

significant difference in the type the nature of company-wise

opinion regarding the reason for adoption of technology.

SUGGESTIONS & RECOMMENDATIONS

Willingness is one of the main factors affecting Computerized Accounting System; hence the software
producer should instigate the willingness of the prospect customers.

Writing Accounting is the main purpose of any Computerized Accounting System so; it should be
tailored in such a way that accounts can be prepared more effectively and easily, and functions like
budgeting, financial management, cash management etc should be simplified so the users access
them.

Software should be user friendly so it should be easy to

understand, so any person can utilize it easily even though he

has a little knowledge about it and hence one has to depend less
on others.
Features like mobile support should be added which can further

reduce paper work and increase the effective usage and

convenience of the operator.
The software must be inexpensive, as the price of the software

matters as per the perspective of the user.

LIMITATIONS OF THE STUDY

Only 200 companies are elected as sample, which can be

expanded.
Only four Sectors are covered under this study, which can be

amplified.
Only four Cities are roofed in this study, which can be

enlarged.

FURTHER SCOPE OF THE STUDY

Sample size can be increased to do a more extensive research on the

subject.
Here only four sectors are selected; hence the sector size can also be

changed or increased.
Sample size of city can be increased form only 4.
This study is based on the convenience of the researcher hence it is

limited to a certain extent.

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